Concentrated Solar Power Market Size - Global Industry, Share, Analysis, Trends and Forecast 2024 - 2032
The Concentrated Solar Power Market Size accounted for USD 7.2 Billion in 2023 and is estimated to achieve a market size of USD 36.4 Billion by 2032 growing at a CAGR of 20.1% from 2024 to 2032.
Concentrated Solar Power Market Highlights
- Global concentrated solar power market revenue is poised to garner USD 36.4 billion by 2032 with a CAGR of 20.1% from 2024 to 2032
- Asia-Pacific concentrated solar power market value occupied around USD 2.9 billion in 2023
- Europe concentrated solar power market growth will record a CAGR of more than 22% from 2024 to 2032
- Among technology, the parabolic trough sub-segment generated noteworthy revenue in 2023
- Based on application, the utilities sub-segment generated significant concentrated solar power market share in 2023
- Development of hybrid systems combining CSP with other energy sources is a popular concentrated solar power market trend that fuels the industry demand
Concentrated solar energy is a method that creates electricity by directing sunlight onto receivers via reflecting surfaces. This concentrated sunlight is converted into heat, which powers turbines or Stirling engines, generating mechanical energy that is then converted into electricity. The use of sophisticated solar power technology has resulted in major increases in performance and cost-effectiveness, as well as substantial benefits from thermal energy storage. These improvements have resulted in an increased demand for concentrated solar power in the renewable energy sector.
Concentrated solar energy uses mirrors or lenses to aim a great amount of sunlight onto a small area, allowing it to harness the sun's power more effectively. The generated heat can be retained in thermal storage systems, allowing power to be produced even when there is no sunlight. This feature offers a more dependable and continuous energy supply than standard photovoltaic systems, which can only generate electricity during daylight hours. Concentrated solar power (CSP) has several advantages, including better efficiency rates due to the focused nature of the sunlight and the potential for integration with other power generation technologies, such as hybrid systems that combine solar and natural gas. Furthermore, CSP plants improve grid stability and reduce reliance on fossil fuels, lowering greenhouse gas emissions.
Global Concentrated Solar Power Market Dynamics
Market Drivers
- Increasing demand for renewable energy sources
- Technological advancements improving efficiency and cost-effectiveness
- Government incentives and subsidies for solar power projects
- Rising awareness of environmental sustainability and carbon reduction
Market Restraints
- High initial capital investment
- Dependence on direct sunlight, limiting geographic suitability
- Competition from other renewable energy sources like wind and photovoltaic solar
Market Opportunities
- Expansion into emerging markets with high solar irradiance
- Innovations in thermal energy storage enhancing energy reliability
- Potential for CSP to be integrated into smart grid systems
Concentrated Solar Power Market Report Coverage
| Market | Concentrated Solar Power Market |
| Concentrated Solar Power Market Size 2022 | USD 7.1 Billion |
| Concentrated Solar Power Market Forecast 2032 | USD 36.4 Billion |
| Concentrated Solar Power Market CAGR During 2023 - 2032 | 20.1% |
| Concentrated Solar Power Market Analysis Period | 2020 - 2032 |
| Concentrated Solar Power Market Base Year |
2022 |
| Concentrated Solar Power Market Forecast Data | 2023 - 2032 |
| Segments Covered | By Technology, By Application, By Capacity, By End Use Industry, And By Geography |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Companies Profiled | Acciona S.A., ACWA Power, Areva Solar, BrightSource Energy Inc., Chiyoda Corporation, Enel Green Power S.p.A., Siemens AG, Solar Reserve, Torresol Energy, and Abengoa SA. |
| Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis |
Concentrated Solar Power Market Insights
An increased understanding of renewable energy's importance for electricity production is anticipated to drive the growth of the solar energy market. Declining crude oil prices and stringent legislation aimed at reducing greenhouse gas emissions are expected to significantly boost demand over the concentrated solar power industry forecast period. Government support for renewable energy infrastructure will play a crucial role in facilitating business development within the power production sector. Industry demand is projected to rise due to the necessity for environmentally neutral, safe, and efficient energy sources. Additionally, there is a growing need for consistent and equitable access to electricity in rural areas, coupled with the constant increase in overall energy consumption and stringent pollution regulations. These factors are set to enhance the appeal and adoption of CSP technologies.
However, the concentrated solar power market has substantial obstacles, with high initial capital expenditure being a major impediment. The development and installation of CSP plants incur significant upfront expenses, which include advanced materials, precision engineering, and the construction of large infrastructure to concentrate sunlight and convert it to energy. These high initial costs can dissuade investors and governments, especially in areas with little financial resources or where rapid rewards take precedence over long-term advantages. Further, the spread of distributed solar power generation is hampered by land-use rivalry, particularly in vast agricultural areas. This competition may limit the growth of CSP installations, influencing consumer uptake in certain areas. Despite these limitations, the CSP industry is predicted to expand rapidly due to increased knowledge of renewable energy's benefits, supportive government regulations, and the continuous demand for clean and reliable energy sources. As technology progresses and economies of scale are realized, the barrier of a large initial capital investment may be reduced, boosting CSP adoption.
Concentrated Solar Power Market Segmentation
The worldwide market for concentrated solar power market is split based on technology, application, capacity, end use industry, and geography.
Concentrated Solar Power Market By Technology
- Linear Fresnel
- Parabolic Trough
- Power Tower
- Dish
According to concentrated solar power industry analysis, the parabolic trough sector accounts for the majority of the market due to its demonstrated efficiency and wide acceptance. Parabolic trough systems focus sunlight onto a receiver tube located near the trough's focal line using curved, reflective mirrors. The heat is subsequently converted into steam, which powers a turbine and generates energy. This technology is preferred due to its low cost, mature design, and scalability, making it appropriate for both small and large-scale applications. Furthermore, parabolic trough systems benefit from vast operational experience and established supply chains, which increase their appeal. Their ability to combine thermal energy storage technologies assures a consistent and dependable energy supply, enhancing their market supremacy.
Concentrated Solar Power Market By Applications
- Desalination
- Utilities
- Enhanced Oil Recovery
- Others
The utilities segment dominates the concentrated solar power (CSP) market, owing to its efficiency in large-scale energy production. Utility firms use CSP technologies to create large amounts of renewable energy, fulfilling the growing need for sustainable power sources. CSP facilities produce high-temperature heat appropriate for steam turbines in big power plants, resulting in efficient electricity production. Furthermore, the combination of thermal energy storage and CSP systems allows utilities to provide a consistent and continuous power supply even in the absence of direct sunlight. This consistent reliability, combined with CSP installations scalability, makes it the favored alternative for utilities seeking to reduce greenhouse gas emissions and achieve renewable energy targets.
Concentrated Solar Power Market By Capacity
- >100 MW
- >50≤100 MW
- ≤50 MW
The concentrated solar power (CSP) market segment, with a capacity more than 100 MW, is predicted to be the largest. This is due to the growing demand for large-scale renewable energy projects that can generate significant amounts of power to meet industrial and grid demands. Larger CSP facilities benefit from economies of scale, which results in cheaper per-unit electricity generation costs. Furthermore, they frequently attract more favorable financing and investment because to their propensity to provide better returns. These facilities also comply with government rules and incentives aimed at lowering carbon emissions and encouraging environmentally friendly energy alternatives. The ability to incorporate thermal energy storage increases its appeal, ensuring a stable and reliable power source.
Concentrated Solar Power Market By End Use Industry
- Residential
- Commercial
- Industrial
The industrial segment is likely to be the largest in the concentrated solar power (CSP) market due to a number of reasons. Manufacturing, mining, and refining are common industrial processes that require significant energy inputs, making them ideal candidates for large-scale renewable energy adoption. CSP systems can deliver the high temperatures and constant power supply required for industrial applications such as steam generation and thermal processing. Furthermore, many sectors are under pressure to minimize their carbon footprint and comply with environmental standards, which is driving the transition to sustainable energy sources such as CSP. Furthermore, the economies of scale provided by industrial-sized CSP systems make them financially appealing to businesses looking to reduce energy costs while improving long-term operational robustness.
Concentrated Solar Power Market Regional Outlook
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Asia-Pacific
- India
- Japan
- China
- Australia
- South Korea
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
The Middle East & Africa
- South Africa
- GCC Countries
- Rest of the Middle East & Africa (ME&A)
Concentrated Solar Power Market Regional Analysis
In terms of concentrated solar power market analysis, Asia-Pacific (APAC) is largest in the industry, which is being driven by a number of causes. Countries such as China, India, and Australia are driving the expansion. China's strong renewable energy targets, as well as considerable expenditures in CSP projects to reduce coal dependency and combat air pollution, have a huge impact on regional growth. India's huge solar potential and supporting government policies are also driving CSP development. Furthermore, Australia's good climate and growing emphasis on renewable energy make it a desirable market for CSP.
Europe is poised to experience significant growth with a favorable compound annual growth rate (CAGR) during the forecast period. Policy initiatives aimed at transitioning from fossil fuels to renewable energy sources are expected to positively impact the region's demand trajectory. Furthermore, substantial investments in innovation and technology advancements by manufacturers are forecasted to bolster demand growth in the region throughout the concentrated solar power market forecast period.
Concentrated Solar Power Market Players
Some of the top concentrated solar power companies offered in our report includes Acciona S.A., ACWA Power, Areva Solar, BrightSource Energy Inc., Chiyoda Corporation, Enel Green Power S.p.A., Siemens AG, Solar Reserve, Torresol Energy, and Abengoa SA.
Frequently Asked Questions
How big is the concentrated solar power market?
The concentrated solar power market size was valued at USD 7.2 billion in 2023.
What is the CAGR of the global concentrated solar power market from 2024 to 2032?
The CAGR of concentrated solar power is 20.1% during the analysis period of 2024 to 2032.
Which are the key players in the concentrated solar power market?
The key players operating in the global market are including Acciona S.A., ACWA Power, Areva Solar, BrightSource Energy Inc., Chiyoda Corporation, Enel Green Power S.p.A., Siemens AG, Solar Reserve, Torresol Energy, and Abengoa SA.
Which region dominated the global concentrated solar power market share?
Asia-Pacific held the dominating position in concentrated solar power industry during the analysis period of 2024 to 2032.
Which region registered fastest CAGR from 2024 to 2032?
Europe region exhibited fastest growing CAGR for market of concentrated solar power during the analysis period of 2024 to 2032.
What are the current trends and dynamics in the global concentrated solar power industry?
The current trends and dynamics in the concentrated solar power industry include increasing demand for renewable energy sources, technological advancements improving efficiency and cost-effectiveness, government incentives and subsidies for solar power projects, and rising awareness of environmental sustainability and carbon reduction.
Which technology held the maximum share in 2023?
The parabolic trough held the maximum share of the concentrated solar power industry.
Select Licence Type
Connect with our sales team
Why Acumen Research And Consulting
100%
Customer Satisfaction
24x7
Availability - we are always there when you need us
200+
Fortune 50 Companies trust Acumen Research and Consulting
80%
of our reports are exclusive and first in the industry
100%
more data and analysis
1000+
reports published till date
